Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 9 pts You are auditing Grey Pty Ltd (Grey). You are at the planning stage of the audit and you ask members of

image text in transcribed
Question 5 9 pts You are auditing Grey Pty Ltd (Grey). You are at the planning stage of the audit and you ask members of your audit team to suggest how to optimise evidence collection so that you have reliable evidence and stay within budget for the audit. Your team members are enthusiastic about being asked to contribute and make many suggestions. Your assistant records the suggestions and lists them for you. The list includes the following suggestions, which are not in any particular order. a. Inspect the policy manual to determine the nature of internal controls over the receipt of goods. b. Inspect the general ledger account to ascertain the ending cash balance. c. Determine the inventory turnover ratio. d. Perform a bank confirmation. e. Visit the warehouse and observe the processing of goods received. f. Enquire with management about the condition of inventory. REQUIRED: The list above contains three pairs of statements. Each pair relates to a specific item that is to be audited. For each pair, identify the audit evidence gathering procedure that you believe to be the more reliable, and the procedure you believe to be the less reliable. Explain your selections

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Performance, Risk And Firm Financing

Authors: P. Molyneux

1st Edition

0230313353, 9780230313354

More Books

Students also viewed these Accounting questions

Question

1. Have a 2-week arrangement; then evaluate.

Answered: 1 week ago

Question

What makes Zipcar an attractive employer for which to work?

Answered: 1 week ago

Question

Evaluate Figure 6-9; what other questions would you ask, and why?

Answered: 1 week ago